Foreclosure filed on Hilo's Naniloa Volcanoes Resort

A North Carolina bank's foreclosure lawsuit against a company owned by Naniloa Volcanoes Resort owner Ken Fujiyama claiming he defaulted on a $10 million loan used to purchase the Hilo hotel in 2006 also asks that a receiver be appointed to prevent the continued "mismanagement" of the Banyan Drive hotel.

The Hawaii Tribune Herald reports the foreclosure lawsuit filed by First Citizens Bank & Trust Co. in August says the hotel, which sits on land leased from the state of Hawaii, is losing money under Fujiyama. The newspaper reports Fujiyama declined to comment on the foreclosure.